Years, decades ago, advertising began to transform and take new forms as digitalization advanced in society. Gone are those episodes of “Mad Men” designing large billboards in an era of static communication.
Already in that scenario we could say that advertising is a vital component for companies and consumers alike, fulfilling a communication and information function beyond promotion. However, digital advertising has represented a substantial change and has emerged as a transformative phenomenon, triggering a revolution in the way brands connect with their audiences.
Digital advertising has been expanding and occupying new territories until it is consolidated today on all digital platforms: on Google or Bing search engines, on Facebook and Instagram, on YouTube, in digital newspapers, on almost all web pages… It is present in our daily lives and, today more than ever, in the minds of consumers, as they have to accept consents when opening any web page, thus highlighting its prominence in the current digital ecosystem. How does it affect consumers? And to companies? What are the next challenges?
The different technologies and measurement systems, in constant evolution, have been and continue to be the best allies in the expansion of digital advertising. These technologies have made much more effective communication possible for both brands and consumers, allowing the message to reach a more receptive audience, in the right place and at the right time to avoid wasting impacts. Digital measurement is now essential to generate value strategies for companies and thus maximize the return on investment. But not only that, it also makes it possible for brands to improve the consumer experience by knowing what they like and what they don’t, one thing being as important as the other.
Furthermore, we find ourselves in a tremendously privileged environment (digital), as it allows two-way communication, providing incredibly valuable information to brands: that which consumers themselves express. This dialogue occurs especially on social networks, where we can not only express that we like something by clicking like, but we can also comment, interact, share, recommend… becoming the perfect gauge of audience preferences.
However, the rise of digital advertising has raised important questions about privacy and ethics.
On the one hand, massive data collection to personalize ads has raised concerns about data security. In this context, regulatory bodies are establishing new limits to ensure that users have control of their data. Brands must obtain consumers’ explicit consent to transfer their data (by clicking “accept” in warning messages on all websites) and do so in a transparent manner. Technology is also evolving and “not everything goes.” The browsers themselves (Apple, Firefox and now Google) are limiting data collection by third parties. It is the new scenario for digital advertising: a cookieless world that is giving a lot of talk in specialized forums.
On the other hand, excessive segmentation can limit users’ exposure to different perspectives. This phenomenon is known as a “filter bubble” and taken to the extreme, it consists of creating an environment where users are only exposed to content that matches their previous preferences and behaviors and reaffirms their opinions. On its negative side, it can condition opinions without any type of debate.
Artificial intelligence in advertising is not something new. Almost from the moment digital advertising was born, AI began to be used in the creation of algorithms for ad activation and campaign optimization. Its application has since been extended to audience segmentation, ad personalization, creation of predictive strategies, chatbots… And the continuous advances in this matter mean that it is increasingly taking on a more important role, such as the creation of content, immersive experiences, hyperpersonalization… AI is going to redefine the way brands connect with audiences, being a key driver of future innovation in the advertising industry.
